Ranchi: The Enforcement Directorate (ED) conducted simultaneous raids in Jamshedpur, Kolkata and Deoghar on Wednesday as part of its investigation into an alleged ₹734 crore fake GST input tax credit (ITC) case in Jharkhand.
During the operation in Jamshedpur, the agency arrested scrap trader Gyan Chand Jaiswal alias Bablu Jaiswal and his son Raj Jaiswal late at night. After their arrest, the father-son duo was brought to MGM Hospital for medical examination. Once the medical process was completed, the ED team took them to Ranchi.
ED Searches Three Locations in Jamshedpur
According to the ED investigation, officials searched three locations linked to the businessman in the Bistupur area.
The agency searched Gyan Chand Jaiswal’s residence-cum-office at Jyoti Apartment, located opposite Hotel Sonnet. Officials also examined the businessman’s flat on the ground floor of BS Tower on K.N. Road and a location linked to his accountant, Sanjay Parekh.
More than 50 ED officers and employees were involved in the search operation. CRPF personnel were deployed at the locations as part of the security arrangements.
The agency examined documents related to business activities, banking transactions, financial records and other papers. Officials also questioned people associated with the premises. In connection with the same case, ED teams also carried out searches at two locations in Kolkata.
Father and Son Raise Allegations During Medical Examination
During the medical examination late at night, Gyan Chand Jaiswal and his son allegedly created a commotion and claimed that they had been implicated in the case.
Gyan Chand Jaiswal also said that his blood pressure was high and complained that he had not received his medication.
Investigation Focuses on Fake Companies and ITC Claims
The ED action is reportedly part of an investigation into an alleged network that used fake companies, invoices and other business entities to obtain input tax credit on a large scale.
The agency is questioning the arrested father and son to gather information about alleged financial transactions, the network of companies and the role of other people connected with the case.
37 Shell Companies and ₹5,000 Crore in Fake Invoices
According to the ED investigation, around 37 shell companies were allegedly created as part of the network and fake invoices worth nearly ₹5,000 crore were issued.
The investigation is examining the alleged claim of ₹734 crore in ITC without any actual supply of goods.
The ED had registered a money laundering case on the basis of an investigation conducted by GST Intelligence.
Other Names Under ED Scanner
According to the agency, the alleged racket involves Amit alias Nikky Bhaleria, Kolkata-based Shivkumar Dewra alias Modit Dewra and Amit Gupta, among others.
The ED also seized audit papers, GST filing logs and balance sheets from the office of CA Sanjay Parekh at BS Tower.
The investigation into the alleged GST fraud network and the financial transactions connected with it is continuing.
